Destination XL Group Inc (NASDAQ:DXLG) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Destination XL Group Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 60% to $0.02 in the quarter versus EPS of $0.05 in the year-earlier quarter.
Revenue: Decreased 2.41% to $93.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.02 per share. By that measure, the company beat the mean analyst estimate of $0.01. It missed the average revenue estimate of $99.59 million.
Quoting Management: “We continued to execute well on our strategy to accelerate the rollout of the Destination XL concept during the first quarter,” said President and CEO David Levin. “Sales and net income growth was affected by a colder-than-usual spring. However, the softness in February and March was partially offset by strong sales in April when the weather warmed up. More importantly, our DXL stores continue to deliver strong results that are better than we initially expected. Dollars per transaction at our DXL stores this quarter increased 17.6% to $154 from $131 in the first quarter of last year. In comparison, dollars per transaction at our Casual Male XL stores was $110 for the first quarter of fiscal 2013. Catalog sales continue to be a drag on our direct business as we transition to a more digital-focused direct marketing strategy.”
Key Stats (on next page)…